Please ensure Javascript is enabled for purposes of website accessibility

Why USANA Health Sciences Shares Shot Up

By Jeremy Bowman – Feb 5, 2014 at 3:22PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of USANA Health Sciences (USNA -0.14%) gained as much as 19% after the company delivered an impressive fourth quarter earnings report.

So what: The multilevel marketer of health supplements said quarterly earnings per share improved to $1.41, better than estimates of $1.37, while sales moved up 10.5% to $186.3 million, also beating the experts' mark. CEO Dave Wentz credited the successful execution of recent company initiatives for the standout quarter. USANA's outlook for 2014 was also promising: the company sees revenue of $790 to $810 million and EPS of $5.80 to $5.95. Analysts had expected sales of just $750.5 million and a per-share profit of $5.63.

Now what: Beating estimates is always a strong sign for a company, but USANA's report comes at a particularly crucial time, just weeks after China accused rival Nu Skin Enterprises of operating as a pyramid scheme. That sent shares of Nu Skin and other industry stocks plummeting as they tend to trade in tandem and are often subject to similar accusations. However, USANA's report today makes it clear that the stock's prospects are solid and growing. As CFO Paul Jones said in a press release, "We expect that growth during 2014 will accelerate as the year progresses." It's hard to argue with an endorsement like that. 

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

USANA Health Sciences, Inc. Stock Quote
USANA Health Sciences, Inc.
USNA
$58.27 (-0.14%) $0.08

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.